Congratulations are in order for the Michigan Attorney General's office, which earlier this year successfully prosecuted five cases of retail gasoline price fixing.

Stations investigated and prosecuted for price-fixing were all located within two miles of each other in Madison Heights. An investigation by District Attorney Bill Schuette's office determined that five stations were setting their prices at an artificial level, within a penny or two of each other. The scheme, which violates Michigan's antitrust law, was an attempt to increase profits from gasoline sales by eliminating competition in the Madison Heights area.

Schuette's office began the investigation after a tip from another gas staton owner revealed that he was pressured to participate in the price-fixing operation. The investigation showed that the stations all set their prices in relation to each other on five occasions last February and March.Michigan's Antitrust Reform Act (MARA) prohibits price-fixing agreements because they undermine competitive market forces and casue artificially higher prices for consumers. Here are the gas stations that pleaded guilty in the 6th Circuit Court to violating Michigan's Antitrust Act:

Marathon Supergas Inc. (Formerly charged as Dequindre Oil Co.at Dequindre Road near I-696) pleaded guilty to three counts. Station manager Farouk Ali Harajili pleaded no contest to one count of violating the Michigan Antitrust Reform Act. The station was fined $50,000.Citgo Durga Lakeshmi Inc. (11 Mile and Dequindre, Madison Heights) pleaded guilty to three counts of violating MARA and was fined $25,000. The station manager, Rengachari "Vijay" Vijayaraghavan, pleaded guilty to one count of attempted violation of MARA and was fined $10,000.J and A Quick Stop (12 Mile and John R., Madison Heights), pleaded guilty to three counts of violating MARA and paid a $20,000 fine.

Sphinx Monster Oil (12 Mile and Dequindre, Madison Heights) pleaded guilty to three counts of violating the antitrust law. The resident agent/lease holder, Shady Mahm Abdelhamid also pleaded guilty to one count and was fined $50,000.

Sunoco Bombay Party Shoppe (11 Mile and John R., Madison Heights) pleaded guilty to three counts and Resident Agent Sam Mansour Shammami was fined $50,000.Joy Yearout, a spokesperson for the Attorney General's office said they pleaded guilty in December and were sentenced in January and February. She added that she could not comment on others businesses that might also be under investigation.As gasoline prices rise consumers are concerned and it's something that we're certainly watching closely. We take this very seriously," Yearout added. Anyone with evidence of an actual price agreement among retailers, not just the fact that prices match in a particular area, are encouraged to contact Attorney General Bill Schuette's Consumer Protective Division. Outside of Michigan consumers with similar information and concerns should contact their state Attorney General's office.

That went on in my little burg for years. Now instead of 6 stations fighting it out, (those good old days when we had gas wars) an out of town chain killed 'em all and our gas is always about 25 cents higher than in places of competition.

Reading some of the comments. The stations are at fault. But the problem does go a lot deeper. Getting the stations does cut off the feet. Now someone needs to go after the head. The companies and the commodity traders. But we know that will never happen. Too much money being funneled into campaign coffers and kickbacks. The overhaul needs to start at the top. Regulation of speculation, and a complete overhaul of the hacks on Capitol Hill. This is kinda like a ponzi scheme. Prosecute them all too.

Maybe it is time to fight back in every state. I liked the sizes $$$$ of those fines.The stations here in Somerset, Pa used to be at least a few cents different in price....now nearly all have identical prices, regardless of oil company, with exception of a few independents, who are lower priced.I don't know if we have similar laws to Michigan in PA, but I will be pressing the local Congressman for some answers and will review the GB blog with him.

Just one small step in a business full of questionable pricing practices. Why is it that if one station raises their prices (Usually Speedway), the others follow by day's end even if they didn't get a new supply of gasoline?

No one prosecutes the oil supply companies for price fixing and yet each of their posted rack prices to stations are almost identical every day of the year whether the price is going up or down but they all post the same price. I think that they are going after the wrong people. When all rack prices are the same or close then all retail are going to be the same or close. They go after the little guy because the station owners do not give money to their election campaigns but the big boys do so they can't prosecute them!

I hope they were really guilty and not just railroaded because of anger over the high prices.

The only other case I've heard about price fixing was by the gas stations owned by Marc Rich in the 70s. His company pled guilty to those charges. He was pardoned by Bill Clinton on January 20, 2001 for illegal trading with Iran and charges of tax evasion in 1983.

Whats new about that?? Here in Defiance,Ohio every station has the same exact price all the time. If 1 goes down a nickel, they all go down a nickel and when they go up a quarter, they all go up a quarter. And you can count that on every Thursday or Friday gas will go UP 20 to 30 cents a gallon and then again on Sunday through Wenseday they go down a few cents each day.